Based on data from the U.S. Census Bureau, re-exports of Canadian heavy crude oil from the U.S. Gulf Coast slipped to 225 Mb/d in November (height of the rightmost stacked columns in top chart below), a reduction of 40% versus the October record of 378 Mb/d. As has been the case for 2023, China was the single largest buyer of Canadian barrels at 126 Mb/d (red column), followed by Spain at 66 Mb/d (blue column). The reduction in Chinese buying may be partly tied to importers reducing their purchases in anticipation of meeting full year import targets for 2023. India (grey column) was the third and final buyer in November at 33 Mb/d. India’s purchases have been more sporadic in 2023 owing to its shift to buying larger volumes of heavily discounted Russian crude oil. In this context, re-exports refer to crude oil that is sourced and exported from Canada to the U.S. and then exported from the U.S. to other nations.
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- Analyst Insight
Re-Exports of Canadian Heavy Crude Oil Conclude 2023 on a Weak Note
Canada's re-exports of heavy crude oil from the U.S. Gulf Coast fell to a six month low in December 2023 as Chinese buyers scaled back purchases. Re-exports may slow further in 2024 once the Trans Mountain Pipeline expansion begins operations in April or May.
- Analyst Insight
Re-Exports of Canadian Heavy Crude Oil Rebound in January
Canada's re-exports of heavy crude oil from the Gulf Coast rebounded smartly in January from weak December levels with China leading the way as the single largest buyer.
- Analyst Insight
Re-Exports of Canadian Heavy Crude Oil Hold Strong in February
Re-exports of Canadian heavy crude oil in February remained strong and gained over January's pace. The pending start up of the Trans Mountain Pipeline expansion may change this story in the months ahead.
